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I G PETROCHEMICALS LIMITED
CORPORATE SOCIAL RESPONSIBILITY POLICY
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Introduction
The provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social
Responsibility (CSR) were amended vide the Companies (Amendment) Act, 2020 which were
effective 28th September, 2020. Further, the Ministry of Corporate Affairs vide the Companies
(Corporate Social Responsibility Policy) Amendment Rules, 2021 (effective 22nd January,
2021) introduced major changes in the law governing the CSR spending by companies.
In view of the above, it is deemed fit to suitably amend the existing CSR Policy of the Company
as enumerated herein.
Objective
At I G Petrochemicals Limited (IGPL), we believe that Corporate Social Responsibility (CSR)
is an integration of the community's economic, environmental and social aspirations with the
Company's business goals and objectives for sustainable growth and development.
As a socially responsible corporate member of the world community, with long enduring
relationships, the Company believes that the future of any business is best served by respecting
the interests of the society at large. Through our efforts we shall strive to improve the living
standards of the surrounding community. Our CSR activities shall aim to bring a difference in
the lives of the needy, under privileged persons of the society including children, women and
senior citizens.
DEFINITIONS
In this Policy, unless the context otherwise requires, the following words, expressions and
derivations therefrom shall have the meanings assigned to tem as under –
“Act” means the Companies Act, 2013.
“Administrative overheads” means the expenses incurred by the Company for ‘general
management and administration’ of Corporate Social Responsibility functions in the Company
but shall not include the expenses directly incurred for the designing, implementation,
monitoring, and evaluation of a particular Corporate Social Responsibility project or
programme;
“Board” means Board of Directors of the Company.
“Corporate Social Responsibility (CSR)” means the activities undertaken by the Company
in accordance with the CSR Policy.
"CSR Committee" means the Corporate Social Responsibility Committee constituted by the
Board of Directors of the Company.
“CSR Rules” means the Companies (Corporate Social Responsibility Policy) Rules, 2014 as
amended from time to time
“International Organisation” shall have the meaning as ascribed to it under the Companies
(Corporate Social Responsibility Policy) Rules, 2014.
“Ongoing Project” means a multi-year project undertaken by the Company in fulfilment of
its CSR obligation having timelines not exceeding three years excluding the financial year in
which it was commenced, and may include such project that was initially not approved as a
multi-year project but whose duration could be extended beyond one year by the Board based
on reasonable justification;
Guiding Principles
The Company shall be guided by the following principles while selecting, implementing or
monitoring the CSR activities: accountability, transparency and sustainability:
1. Priority shall be given to the issues which are of utmost national importance viz.
eradicating hunger, poverty and malnutrition, safe drinking water, environment
sustainability, education, health and sanitation, disaster response, arts, heritage and
culture, etc.
2. The focus of CSR activities shall be on sustainable development and address the basic
needs of the deprived/weaker section of the Society.
3. Overall developmental activities in areas surrounding the Company’s plants for the
overall benefit of the society.
4. For meeting the requirements arising out of immediate and urgent situations with regard
to formulated CSR projects / programmes, the Chairperson shall be authorized to
approve such proposals and expenditures.
5. The CSR committee shall institute a transparent monitoring mechanism for
implementation of the CSR projects or programs or activities undertaken by the
Company.
Implementation
1. The CSR projects shall be undertaken by the Company directly or through an entity as
referred to in Rule 4 of the CSR Rules. The Company shall ensure that such entity
registers itself with the Central Government by filing Form CSR-1 with the Registrar
of Companies and the Company obtains the unique CSR registration number from such
entity.
2. CSR activities can be undertaken for Ongoing Project.
3. The Company may engage International Organisations for designing, monitoring and
evaluation of the CSR projects or programmes.
4. The company may also collaborate with other companies for undertaking projects or
programmes or CSR activities provided the Company is able to report separately on
such projects or programmes in its CSR Report.
5. The Company may be permitted to spend the CSR amount for the creation /acquisition
of capital asset and in such cases, the capital asset shall be held by the entities named
in accordance with Rule 7(4).
Responsibilities of the CSR Committee
The CSR Committee shall be entrusted with the following responsibilities:
1. It shall be the responsibility of the CSR Committee to formulate and recommend to the
Board, an annual action plan, which shall include the following:
a. the list of CSR projects or programmes that are approved to be undertaken in areas
or subjects specified in Schedule VII of the Act;
b. the manner of execution of such projects or programmes as specified in Rule 4(1)
of the CSR Rules;
c. the modalities of utilisation of funds and implementation schedules for the projects
or programmes;
d. monitoring and reporting mechanism for the projects or programmes; and
e. details of need and impact assessment, if any, for the projects undertaken by the
Company:
Provided that Board may alter such plan at any time during the financial year, as
per the recommendation of its CSR Committee, based on the reasonable
justification to that effect.
2. Monitoring the implementation of the CSR Policy
3. Formulate and recommend to the Board, the CSR Policy
4. Recommend to the Board, the CSR expenditure to be incurred during each financial
year.
Responsibilities of the Board
The Board shall be entrusted with the following responsibilities:
1. Approve the annual action plan and the CSR Policy as recommended by the CSR
Committee.
2. Satisfy itself that the CSR funds disbursed by the Company have been utilised for the
purposes and in the manner as approved by it. The Chief Financial Officer shall give
his certification to this effect.
3. In case of Ongoing Project, monitor the implementation of the project with reference
to the approved timelines and year-wise allocation.
4. May make such modifications at it may deem fit for smooth implementation of the
project within the overall permissible time period.
5. Ensure that the administrative overheads shall not exceed 5% of total CSR expenditure
of the Company for the financial year.
6. Ensure that the Company spends the annual CSR amount in accordance with CSR
Policy.
7. Any surplus arising out of the CSR activities shall not form part of the business profit
of the Company and shall be ploughed back into the same project or shall be transferred
to the Unspent CSR Account and spent in pursuance of the CSR policy and annual
action plan of the Company or transfer such surplus amount to a Fund specified in
Schedule VII, within a period of six months of the expiry of the financial year.
8. Where the Company spends an amount in excess of requirement provided under Section
135(5) , such excess amount can be set off against the requirement to spend up to
immediate succeeding three financial years subject to the conditions that –
a. the excess amount available for set off shall not include the surplus arising out of
the CSR activities, if any, stated herein above and
b. the Board of the Company passes a resolution to that effect.
Reporting
1. The Board’s report shall include an annual report on CSR containing particulars
specified in Annexure I or Annexure II of the CSR Rules, as may be applicable.
2. Where in any 3 immediately preceding financial years, the average CSR obligation of
the Company is Rs. 10 crores or more, the Company shall undertake impact assessment,
through an independent agency, of their CSR projects having outlays of Rs. 1 crore or
more, and which have been completed not less than 1 year before undertaking the
impact assessment study.
3. The impact assessment report shall be placed before the Board and annexed to the
annual report on CSR.
Display on Company’s Website
The website of the Company shall contain the following information:
1. Composition of the CSR Committee
2. CSR Policy
3. Projects approved by the Board
General
a. In case of any doubt with regard to any provision of the policy and also in respect of
the matters not covered herein, a reference can be made to the CSR committee. In all
such matters the interpretation and decision of the Chairperson of the Committee shall
be final.
b. Any or all provisions of the CSR Policy would be subject to revision/amendment in
consultation with CSR committee and in accordance with the guidelines on the subject
as may be issued by the government from time to time.
c. The Board may modify or amend the Policy from time to time. However this policy in
whole or in part shall stand modified / amended from time to time without any further
act on the part of the Company as and when there would be any statutory
modification(s) / amendment(s) / revision(s) to the applicable provisions thereto.
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The above policy was adopted by the Board of Directors at their meeting held on
10th February, 2015 and amended on 24th May, 2021
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